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SID Banka Issues EUR 750M Euro Bond

Ljubljana, 15 April (STA) - The state-owned SID banka has completed a EUR 750m five-year euro bond issue with annual interest of 3%, its first on international markets. The bond, rated by Moody's Aa2, will be listed on the Luxembourg stock exchange, the bank said Thursday.

At issue the the yield was 26 basis points above the reference T-bonds and 63 basis points above the mid swap rate. Deutsche Bank, HSBC and Unicredit acted as bookrunners.

The issue was heavily oversubscribed. Commercial banks bought up the bulk (44%), followed by insurance companies and pension funds (24%) and investment funds (20%).

Germany-based investors bought 26% of the issue and Slovenian 25%. The majority of other investors are European but a portion was also sold to Asia.

SID banka says it will use the proceeds to credit companies, which has been its main task since commercial banks tightened lending due to the financial and economic crisis.

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